Some Corn, Soybeans 'On Track For Record Yields' -- Analyst, USDA

Weather conditions continue to stay corn- and soybean-friendly, and the latest USDA Crop Progress data show that weather remains behind a steady climb in overall field conditions.

Monday's weekly USDA report shows a 1% improvement in corn conditions nationwide. Now, 76% of the crop is in good or excellent condition. The numbers are led by Illinois, where USDA estimates 81% of the crop is in the top two condition categories.

Meanwhile, soybean conditions were unchanged overall, with a 1% gain in the segment of that crop rated "excellent" and a 1% slip in that rated "good," Monday's report shows.

"The Corn Belt states of Illinois, Ohio, Nebraska, and Pennsylvania are on track to post record yields. Corn pollinating is at 34%; this is up from 15% last week and 1% ahead of the five-year average," says Kluis Commodities broker and analyst Al Kluis. "The nation’s soybean crop is rated very high, with a rating of 72% good to excellent. Again, the best crops are in the central Corn Belt, and the problem areas are in Minnesota and Kansas."

Kluis says he expects Monday's data to be slightly bearish -- not a surprise considering the largely bearish tone in the grains over the last two weeks -- heading into Monday night overnight trading and into Tuesday's session.

"Today's report is a little negative for prices tonight. I expect corn to start out 1 to 2 cents lower tonight," he says. "For soybeans, today's report is likely to take prices a little lower tonight for new-crop prices."